Sep. 28, 2012

Gov. Eddie Calvo meets with Guam Fire Department personnel gathered at the Tamuning fire station on Sept. 18 to discuss efforts on spending cuts. Calvo told the GFD that they were now safe from pay cut ideas proposed by his adminstration; but he still must find ways to trim government spending and balance the budget. Calvo yesterday announced that he will continue the 15 percent reserve, that is, all executive branch agencies will have to make do with 15 percent less than what they were appropriated -- and that's with the 6 percent reduction implemented by the Legislature. Pacific Daily News file photo

Written by

Brett Kelman
Pacific Daily News

Despite a 6-percent reduction in the budget for next fiscal year, Gov. Eddie Calvo plans to maintain a 15-percent reserve for the entire executive branch, forcing many agencies to tighten their belts even more.

Calvo announced yesterday that the combination of the 6-percent reduction and the 15-percent reserve will amount to more than $100 million of spending cuts by Sept. 30, 2013. The reserve will mean "drastic" cuts to GovGuam agencies, Calvo said.

"Agencies will be forced to cut almost every expense, including personnel," Calvo said in a column submitted to the Pacific Daily News. ...